OTTAWA, May 21 /CNW/ - RAMTelecom Inc. (TSXV: RTC) today reported results
from the first quarter, ended March 31, 2009. The highlights provided in this
press release should be read in conjunction with the Corporation's unaudited
interim Financial Statements and Management Discussion and Analysis for the
first quarter of 2009, found on SEDAR at www.sedar.com.
Three Months Ending Q1 2009 Q1 2008 Change
------------------- ------- ------- ------
Revenues $ 864,878 $ 1,249,433 (31%)
Cost of Sales $ 627,670 $ 797,119 (21%)
Gross Margin $ 237,208 452,314 ($215,106)
Gross Margin Percentage(1) 27% 36% (25%)
Net Income (Loss) $ (275,599) $ (146,658) (88%)
Cash Flow(1) $ (170,551) $ 669 -
(1) see Non-GAAP Measures in MD&A
The Corporation's first quarter revenues of $864,878 decreased by 31%
from $1,249,433 in revenues reported for the first quarter of 2008. Satellite
services recurring revenue decreased by $47,424 or 6% while one-time product
sales revenues decreased $337,131 or 78% compared to results from Q1 2008.
Winter oil and gas activity operated at a small fraction of normal levels for
Q1 with the majority of customer capital expenditure budgets being frozen. The
Corporation reported a negative cash flow of $170,551 compared to a positive
cash flow of $669, net of non-cash expenditures, in the same period last year.
The overall gross margin percentage decreased by 25%, compared to the prior
RAMTelecom CEO, Ralph Misener, commented, "RAMTelecom's performance is
indicative of operating in a depressed economy throughout our market segments.
We are putting our efforts into developing non-traditional markets to
establish new revenue streams for both Broadband and mobile satellite
On April 20, 2009, the Corporation entered into a definitive Share
Purchase Agreement with Omniglobe Networks Inc to sell all the outstanding
shares of its subsidiary, Misener Telecom. The acquisition, scheduled to be
completed on May 19, 2009 was extended to close on or before May 29, 2009.
About RAMTelecom Inc.
RAMTelecom Inc. (TSXV:RTC) is a satellite service provider delivering
flexible, scalable solutions for broadband data and voice business
communications. Its fixed and mobile satellite-based communication services
and value-add solutions are designed for medium and large enterprises in oil
and gas, mining, and forestry and government agencies. With complete coverage
of the North American market, the Corporation's satellite broadband services
help organizations achieve greater operational efficiency by providing
continuous real-time communications between central offices and remote
locations anywhere in North America.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: R. A. (Ralph) Misener, President and Chief
Executive Officer, Tel: (613) 747-1836 Ext. 125, Email: